Compaq Announces `Windows 2000 READY' PCs and Free Operating System Upgrade.

HOUSTON--(BUSINESS WIRE)--Aug. 17, 1999--

Compaq Computer Corporation (NYSE:CPQ) today announced a free license upgrade program for Microsoft Windows(R) 2000 Professional and a comprehensive Microsoft Windows 2000 READY PC program, providing its customers with outstanding investment protection and a convenient migration path to Microsoft's new operating system. Compaq will offer a free license upgrade from Windows NT Workstation 4.0 to Windows 2000 Professional for "Windows 2000 READY PC" systems purchased between June 15, 1999 and March 31, 2000.

Compaq is the world's leading provider of PCs with Microsoft Windows NT Workstation, having shipped more than 6 million Windows-based PCs to date.

All currently shipping Compaq Deskpro PCs and selected Compaq Professional Workstations with pre-installed Windows NT 4.0 and at least 64MB of memory are Windows 2000 READY. In addition, Compaq is working closely with Microsoft to test selected models of Compaq Armada notebooks for inclusion in this program. Compaq Windows 2000 READY PCs include a 300 MHz or greater Pentium processor for desktops, 233 MHz or greater processor for notebooks, at least 64 MB of memory, and Microsoft Windows NT 4.0 Workstation preinstalled. All models are tested for Windows 2000 compatibility and upgradeability, and have been qualified by Microsoft as a "Windows 2000 READY PC."

The transition to Windows 2000 Professional is backed by Compaq's industry-leading service and support offerings.

"Compaq wants to make sure its customers have a clear path to the future," said Mike Winkler, Senior Vice President and General Manager of Compaq's Commercial PC Group. "Our goal is to make the transition to new technologies as easy as possible for our customers. To achieve this goal Compaq has been working with Microsoft for over two years to ensure all Compaq PCs are fully tested and compatible to run Windows 2000 Professional. As the world's largest Microsoft-certified services organization, Compaq has been able to give its enterprise customers the help they need in planning and deploying Windows 2000 in their environment."

Over 27,000 well trained service professionals make Compaq the world's largest global services organization. Compaq Services is deploying one thousand Microsoft certified consultants worldwide to assist with customer migrations to Windows 2000.

Unique Partnership

Compaq and Microsoft have worked together to create a Windows 2000 Professional PC platform for customers that demand peak performance without sacrificing reliability, manageability, or flexibility. Compaq was the first hardware vendor in Microsoft's Rapid Deployment Program (RDP) for Windows 2000 and was the exclusive hardware provider for all 1998 Windows 2000 RDP events.

"Building on our strong, decade long partnership, we have worked closely with Compaq to ensure their Windows 2000 READY PCs have been designed to give customers the easiest possible upgrade path to Windows 2000 Professional," said Deborah Willingham, Vice President, Business and Enterprise Division, Microsoft Corporation. "Our mutual business customers will benefit from both the reliability and performance advantages of Windows NT Workstation 4.0 today, with the assurance that they are ready to move quickly to Windows 2000 Professional when it's released."

Compaq and Microsoft have worked closely on the design, development, and testing of many key Windows 2000 technologies, including Advanced Configuration and Power Interface (ACPI), hot docking, hot swapping of MultiBay devices, PC Card support, and USB. Compaq's Windows 2000 READY PC products when upgraded with Windows 2000 Professional leverage security features such as native support for Smart Card Technology, and convenience features such as Plug and Play. Compaq Smart Card Keyboards and Readers integrate seamlessly into Windows 2000 Professional to provide enhanced network security.

For more information on Compaq Windows 2000 READY PCs, Windows 2000 Professional upgrade program, and a continually updated list of Windows 2000 PC READY products, see http://www.compaq.com/microsoft/windows2000.

Company Background

Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. Windows is a registered trademark of Microsoft Corporation in the United States and other countries and is used under license from owner.